People are your greatest asset.
How well does your company manage people? Here are some of the best KPIs to track human resource management.
A high turnover = more costs to recruit + more costs to train.
High turnover = lost productivity.
Calculation example:
Employees at start of quarter: 110
Employees leaving: 20
New hires: 10
Employees at end of quarter: 100
Average number of employees = (110 + 100) / 2 = 105
Turnover rate = 20 / 105 = 19%
Questions to ask:
Do we do a proper job fit assessment when hiring?
Do we provide training opportunities?
Is our company culture welcoming?
Is our remuneration competitive?
Are we uncovering problem behaviour early and addressing it early?
High absenteeism is a red flag.
Possible reasons:
- Wrong fit: the person's skills and/or personality don't fit the job
- No training: Staff are expected to sink or swim
- Company culture: A toxic culture is a sure-fire way to make people leave
- Poor performers: Identify them quickly and performance manage
Training is often an afterthought.
A company training plan will:
- Ensure compliance with legal requirements
- Keep your workforce skills up to date with changing technologies
- Help to motivate staff and build loyalty
Internal staff are promoted = high employee retention
High employee retention = low recruitment costs
High employee retention = lower training costs
High employee retention = knowledge and processes are maintained
High employee retention = better company culture and team spirit
Internal staff are promoted = higher employee motivation
Higher motivation = better company culture
Higher motivation = higher productivity
Questions to Ask:
Do our staff have a career path?
Can they expect to be promoted if they work hard enough?
Do they have a long-term future at our company?
Are we providing training and learning opportunities?
Do we understand the ambitions and aims of every person working for us?
